An open economy with worldwide connections
Global ties help make our nation prosperous. Our success comes from being an open and adaptable trading nation that is deeply connected to the global economy. Trade contributes over 40% of Australia’s GDP, with services and digital trade emerging as important areas of trade growth.
Australian trade is hard-wired into the fastest-growing countries. Seventy-five per cent of our trade is with dynamic economies in the Asia region. Preferential access to Asian markets also makes us a natural springboard for global companies.
We are a migrant nation. This helps us stay engaged with all parts of the world. Around 29% of people in Australia were born overseas, and nearly half of Australians say that at least one parent was born overseas. Over a fifth of Australians speak a language other than English at home.
While Australia has been a net-capital exporter in recent years, foreign investment continues to power our major industries. Foreign direct investment (FDI) has grown by approximately 7% per year over the last decade and has now topped A$1 trillion.
Australia actively seeks new trading opportunities. We have 17 free trade agreements (FTAs) and have led the formation of multiple, regional trade agreements in the Asia-Pacific, including the Regional Comprehensive Economic Partnership (RCEP).
We haven’t stopped there. Our newest agreement – the Australia-India Economic Cooperation and Trade Agreement – connects Australia with one of the world’s fastest-growing economies. Arriving shortly is a comprehensive FTA with the UK, which expands opportunities for trade and investment with a historical trading partner.